The Political Foundations of Inter-Firm Networks and Social Capital: A Post-Communist Lesson

Reginald H. Jones Center Working Paper No. 2003-05

42 Pages Posted: 2 Feb 2005

See all articles by Gerald A. McDermott

Gerald A. McDermott

University of South Carolina - Moore School

Date Written: August 2004

Abstract

This article attempts to account for both continuity and change in network structures and relationships by analyzing how a country's political approach to institution building interacts with network reproduction. While firm level actors may develop tenacious socio-economic relationships, the authority structure of a network emerges from the ways certain constituent firms align themselves with public institutions. I empirically examine this approach by analyzing the evolution of Czech industrial networks during and after communism. The fragility, eventual stability, and subsequent changes in networks come not from purely "intranetwork" factors, but rather from the political approach of the government toward institution building. In short, this article aims to renew our focus on the origin and evolution of social capital and networks by bringing politics back into the forefront.

Keywords: Network evolution, institutions, politics, transitions, social capital

JEL Classification: D74, D83, F20, H11, L22, P26, P31

Suggested Citation

McDermott, Gerald A., The Political Foundations of Inter-Firm Networks and Social Capital: A Post-Communist Lesson (August 2004). Reginald H. Jones Center Working Paper No. 2003-05, Available at SSRN: https://ssrn.com/abstract=658403 or http://dx.doi.org/10.2139/ssrn.658403

Gerald A. McDermott (Contact Author)

University of South Carolina - Moore School ( email )

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803-777-1035 (Phone)

HOME PAGE: http://www.geraldamcdermott.com

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